LCC - Biogas at a food production plant

This study investigates different options for utilization of residual products from food-production. A food producing company (FPC) is drastically increasing the production which results in more residual products from their processes. This, in-turn, has the effect that they need to establish new on-site facilities for handling of these increased residual streams. Either an on-site sewage treatment facility or the former combined with an on-site biogas production. Life cycle cost (LCC) analysis is used to compare the two options.


The analysis of LCC-results can be used to determine which option is the most financially preferred from the company’s standpoint. The results are clear and show that the biogas-option is favorable and a profitable option of investment for the company.

To determine how various parameters and factors influence the results, an extensive sensitivity analysis was also included in this study where several parameters were altered. The Net Present Value of Investment is influenced by all parameters in the following order: i) biomethane price of the grid, ii) revenue from fiber sludge, iii) calculation period, iv) interest rate, v) investment cost sewage treatment plant, vi) revenues biofertilizer, vii) investment cost biogas plant, viii) electricity price, and ix) sludge revenue/cost. This is a measure of how important the individual parameters are for the company’s decision on how to proceed with their investment plans.

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